P ABDUL KAREEM,KOZHIKODE V. ITO WARD 2(3), KOZHIKODE

ITA 255/COCH/2023

AI Insights

The case involves P. Abdul Kareem, an individual engaged in rubber trading, who appealed against the order of the ld. CIT(A)/NFAC which dismissed his appeal for non-prosecution. The original assessment for AY 2014-15 included unexplained cash deposits and agricultural income discrepancies, leading to a significant tax assessment. The assessee contended that he was unable to respond to the CIT(A) due to issues with the email notifications and lack of hard copy communications. The Tribunal found merit in the assessee's request for a re-hearing, considering the procedural lapses in communication.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 34181 (ITAT-COCHIN)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-04-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LEENA LAL
• Assessee Lawyers: RISHAL K.
• Keywords: Opportunity of being heard
• Section: 143(3); 142(1); 250; 143(1)

Judgement Text

"ITA No.255/Coch/2023 P. Abdul Kareem, Kozhikode IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH:COCHIN BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI KESHAV DUBEY, JUDICIAL MEMBER ITA No.255/Coch/2023 Assessment Year: 2014-15 P Abdul Kareem PuthenVeetil House Thamarassery Kozhikode Kerala 673 573 PAN NO :AJFPA2972D Vs. ITO Ward-2(3) Kozhikode APPELLANT RESPONDENT Appellant by : Shri Rishal K., A.R. Respondent by : Smt. Leena Lal, Sr. D.R. Date of Hearing : 27.01.2025 Date of Pronouncement : 02.04.2025 O R D E R PER KESHAV DUBEY, JUDICIAL MEMBER: This appeal at the instance of the assessee is directed against the order of ld. CIT(A)/NFAC dated 9.2.2023 vide DIN & Order No. ITBA/NFAC/S/250/2022-23/1049565903(1) for the AY 2014-15 passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”). 2. The assessee has raised the following grounds of appeal: ITA No.255/Coch/2023 P. Abdul Kareem, Kozhikode Page 2 of 6 ITA No.255/Coch/2023 P. Abdul Kareem, Kozhikode Page 3 of 6 ITA No.255/Coch/2023 P. Abdul Kareem, Kozhikode Page 4 of 6 3. Brief facts of the case are that the assessee is an individual dealing in rubber under the name and style of \"Amla Trading\" in Thamarassery and had filed his Return of Income for the Assessment Year 2014-15 on 21-05-2015 electronically declaring income of Rs. 11,97,330.00/- and agricultural income of Rs. 20,08,220/-. The same was accepted u/s. 143(1) of the Act. Thereafter the case was selected for limited scrutiny under CASS for examining i) Agricultural Income ii) Cash Deposits. Accordingly, notices u/s. 143(3) as well as u/s. 142(1) of the Act was issued. During the course of assessment proceeding, the assessee filed cash flow statement to explain the cash deposit with the bank. The AO observed that the assessee did not file the cash flow with the bank accounts to prove the cash balance and on analyzing the cash flow statement held that there is a shortage of cash amounting to Rs. 53,65,000/- which is assessed as unexplained cash under income from other sources. Further, in the cash flow, the assessee declared deposits of Rs. 62,69,000/- from four persons but the AO held that in the absence of confirmation, source and nature of the amount of these credits, the entire amount represents income taxable under the income from other sources. Lastly, the AO added Rs. 14,442/- as interest from Saving bank account under income from other sources and assessed on a total income of Rs. 1,48,43,990/- 4. Aggrieved by the assessment completed u/s. 143(3) of the Act dated 28.12.2016, the assessee preferred an appeal before the ld. CIT(A)/NFAC. 5. The ld. CIT(A)/NFAC dismissed the appeal of the assessee by holding that the assessee is not interested in prosecuting the appeal as neither any submission/document were submitted in support of ITA No.255/Coch/2023 P. Abdul Kareem, Kozhikode Page 5 of 6 his case nor sought for any adjournments. Accordingly, appeal filed by the assessee was dismissed for non-prosecution. 6. Aggrieved by the order of ld. CIT(A)/NFAC dated 09.02.2023, the assessee has filed the present appeal before this Tribunal. 7. Before us, the ld. AR of the assessee submitted that the assessee could not represent his case before the ld. CIT(A)/NFAC since all the notices were sent through email-id which did not belong to the assessee / is no longer in use / was incorrect. Further AR submitted that the faceless appeal was implemented for the first time and the assessee was unaware of the e-proceedings carried out and also no hard copy of the notices was served on the assessee. The ld. CIT(A)/NFAC dismissed the appeal of the assessee for non-prosecution without considering the merit of the case which is bad in law and prayed to provide one more opportunity before the ld. CIT(A)/NFAC. 8. The ld. DR on the other hand supported the order of the authority below. 9. We have heard the rival submissions and perused the material available on record. A perusal of the fact of the case shows that the assessee could not represent his case before the ld. CIT(A)/NFAC as a result of which the ld. CIT(A)/NFAC has dismissed the appeal of the assessee on account of non- prosecution. Further on perusal of the order of the ld. CIT(A)/NFAC, it is found that the ld. CIT(A)/NFAC has also not adjudicated the issues on merit. As per the provision contained in section 250(6) of the Act, the order of the ld. CIT(A)/NFAC disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. ITA No.255/Coch/2023 P. Abdul Kareem, Kozhikode Page 6 of 6 9.1 During the course of hearing, the ld. AR of the assessee requested that the assessee may be provided with one more opportunity to represent his case before the ld. CIT(A)/NFAC. In view of the above, considering the prayer of the ld. A.R. of the assessee, as well as in the interest of justice and fair play, we deem it fit to remit the entire issues involved in the present appeal to the file of ld. CIT(A)/NFAC for fresh adjudication in accordance with the law. Needles to say, reasonable opportunity of being heard must be granted to the assessee. The assessee is also directed to produce all the necessary documents/evidences/information in support of his claim and shall not seek unnecessary adjournments. It is ordered accordingly. In the result, appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 02nd April, 2025 Sd/- (Inturi Rama Rao) Accountant Member Sd/- (Keshav Dubey) Judicial Member Bangalore, Dated: 2nd April, 2025. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Cochin. "